Cable to defend Californian monopolies with attacks on independent projects

by Steve Blum • , , , ,

Comcast, Charter Communications and other cable companies are demanding the right “to challenge each and every application” for broadband infrastructure subsidies from the California Advanced Services Fund (CASF). Their lobbying front organisation, the California Cable and Telecommunications Association (CCTA), made their perpetual litigation plans clear in a new round of comments on the California Public Utilities Commission’s plan to reboot the program.

The cable companies also want to be able to block independent projects by cherrypicking homes and neighborhoods census blocks using the right of the first night right of first refusal given to them by the lawmakers they’ve generously funded in return. CCTA called universal service requirements advocated by other organisations “especially unreasonable”.

Like the cable lobbyists, AT&T repeated many of it previous arguments in its comments. But it did make one statement about funding middle mile facilities that is both true and useful for developing economically viable broadband projects…

If a CASF applicant and middle-mile provider cannot agree on access rates, terms, and conditions through arm’s-length negotiation, that alone is evidence that the middle-mile provider’s proposed rates, terms, and conditions are not commercially acceptable for the project at issue, and that building middle-mile infrastructure is “indispensable” to the project.

Middle mile infrastructure that connects local, last mile networks to central Internet hubs, such as those found in Silicon Valley, is essential. Incumbents – AT&T included – have used their control over those choke points to keep broadband prices high and competitors out. The CPUC should subsidise more middle mile fiber construction whenever possible, but that money should come with the same strings attached to last mile projects: grant recipients should offer it on the open market at published rates.

Several other groups submitted comments, also mostly restating earlier positions. The North Bay North Coast Broadband Consortium weighed in for the first time, urging the commission to hold incumbents accountable when they exercise a right of first refusal but don’t build out, and to give priority to projects that offer faster broadband speeds than the pathetic 10 Mbps download/1 Mbps upload service that the California legislature agreed to subsidise.

North Bay North Coast Broadband Consortium
CPUC Public Advocates Office (formerly known as the office of ratepayer advocates)
Greenlining Institute
TURN

AT&T
California Cable and Telecommunications Association (lobbyists for Comcast, Charter and other cable companies)
California Emerging Technology Fund
Geolinks
Race Telecommunications
Small Local Exchange Carriers (small, rural telcos)

Links to other documents – decisions on other issues, drafts, comments and more – are here.